Electrifications & Energy Policy
Indonesia's Commitment to Renewable Energy
Policy & legislative framework
Permen ESDM No. 02 Tahun 2024 removes previous capacity limits for rooftop solar installations and aligns them with government development quotas to accelerate adoption. The 2021–2030 General Electricity Supply Plan (RUPTL) emphasizes renewables' significant role in Indonesia's energy future.
A national priority
Solar energy is positioned as central to transforming Indonesia's energy landscape across its diverse archipelago. These efforts connect to the Paris Agreement and climate resilience — particularly important for an island nation facing rising sea levels. Ibu Kota Nusantara (IKN), Indonesia's new capital, is targeting net-zero emissions by 2045 using renewable energy.
Challenges and opportunities
High infrastructure investment needs, upfront technology costs, and public awareness gaps remain challenges. But decreasing solar costs and supportive policy position Indonesia as a potential Southeast Asian renewable energy leader.